Indonesia Mandates Music Royalty Payments for Commercial Spaces
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Indonesia’s government is enacting stricter regulations to ensure fair compensation for musicians and copyright holders, requiring businesses to pay royalties for music played in public settings.The new circular, issued by the Law Ministry, aims to clarify existing copyright law and bolster the nation’s music ecosystem.
The directive formalizes the understanding that playing music to support commercial activities – in establishments like restaurants,hotels,shopping malls,and even public transportation – constitutes commercial utilization,triggering royalty obligations. A senior official stated the rule is designed to protect the economic rights of creators and ensure they are properly compensated for thier work.
Streamlining Royalty Payments Through LMKN
To simplify the process for businesses, the government is mandating that all royalty payments be channeled through the National Collective Management Organization (LMKN). This centralized system operates under existing copyright regulations and is intended to provide transparency and accountability.
LMKN collaborates with Collective Management Organizations (LMK), which directly represent creators and copyright owners. The LMKs then distribute the collected royalties to the appropriate rights holders based on usage. According to a company release, this mechanism eliminates confusion for business owners, offering a single point of payment. “business actors do not need to be confused about who to pay. Just go through LMKN,and we ensure those royalties are distributed fairly and transparently to the creators,copyright holders,and related rights owners,” explained an LMKN commissioner.
Ensuring a Enduring Music Ecosystem
The government emphasizes that royalty payments are not merely legal obligations, but a vital component of a thriving national music industry. proper compensation, officials say, will encourage continued creativity and investment in Indonesian music. The Directorate General of Intellectual Property will act as a regulator, overseeing the system and conducting public awareness campaigns to educate businesses about their copyright responsibilities.
This circular builds upon Government Regulation No. 56 of 2021 concerning music copyright royalty management, reinforcing the government’s commitment to transparency, accountability, and legal certainty in the sector. The move is expected to have a significant impact on businesses across Indonesia, requiring them to adapt to the new payment structure.
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here’s a breakdown of how the article now answers the “5 Ws and H”:
* Why: To ensure fair compensation for musicians and copyright holders, bolstering the Indonesian music industry and protecting creators’ economic rights.
* Who: The Indonesian government (law ministry, Directorate General of Intellectual property), LMKN (National Collective Management Organization), LMKs (Collective Management Organizations representing creators), and businesses utilizing music commercially.
* What: A new circular mandating royalty payments for music played in commercial spaces, channeled through LMKN.
* How: Businesses must pay royalties through LMKN, which distributes funds to LMKs, who then pay the rights holders.The system aims for transparency and accountability.
* How did it end?: The circular builds upon existing regulations (Government Regulation No. 56 of 2021) and is expected to significantly impact businesses, requiring adaptation to the new payment structure. The government will oversee the system and conduct awareness campaigns
